Whether it was when Harry met Sally, Allie and Noah, the English Patient, or Han and Leia; a kiss can be valuable, and justify real love between two people, but it probably only happens to people with good credit—or so says the thesis of a 2015 paper by the Federal Reserve; an exhaustive study on the connection between credit scores and committed relationships.
This massive study followed various credit delinquencies—bankruptcies, foreclosures, excessive inquiries, limited credit history, a high debt-to-income ratio, etc—in combination with people in the middle of forming a relationship. If you think you found that special someone on match, okcupid, or tinder—here’s where you may want to look away. Ready? Okay. Let’s look at the data.
The graph below is basically what being single looks like on an x and y axis. If you want to form that special Notebook love, a credit score of 700 or above increases the odds of being in a relationship the following year. The second graph reveals the odds of separating during the 2nd, 3rd, and 4th year of a relationship; the chance of separating from a new significant other goes down as credit scores go up.
There’s a lot more. Before getting to potential causes, let’s run through some numbers from the Federal Reserve report. Couples are 50 percent more likely to separate after one party files for bankruptcy. Couples are 30 percent less likely to separate after acquiring a mortgage debt (of $10,000) and auto loan debt (of $3,000). Buying a car to accompany that new home pays off in candle-lit dinners.
Maybe you don’t want a calculator to figure out what makes you dateable? Fine. Here is your dateability in exact amounts: $11,525 in credit card debt is the magic number when it comes to debt that makes you less desirable; then $1,830 in payday loans; and finally $51,000 for student loans. Granted, you can still beat cupid’s odds, but now you know.
Maybe seeing exact dollar figures puts you in a cold sweat. Fine. Here is your desirability in FICO terms (it’s worth noting that a FICO score of 660 is the average credit score between couples forming a committed relationship): you are 24 percent more likely to separate in 2-4 years if the credit score gap between twp people is 66 points. If your credit score goes up 93 points within that 2-4 year gap, you are 30 percent less likely to separate.
So love is not Ryan Gosling’s gaze, or Romeo and Juliet; it’s just a boring string of three digits.
Ok maybe not—the message here is not that your credit scores are more important than the actual affection shared between two people. But consider what your credit score represents. As we’ve discussed and written about; money is no longer just a matter of having more versus having less. You live in a literal, digital network of lenders (like Equifax) who use your FICO score to functionally calculate your trustworthiness. In truth, the credit bureaus have always been big brother types, and doing so means not just looking at financial records, but determining if you’re a stable, drama-free individual.
Your credit score allows you to buy assets (cars, and homes, for example), and the higher the score, the lower your interest rates on the most important things the average person will buy in their lifetime. That score tells lenders the degree to which you can be trusted to pay on time, recover from your debts, and keep your life in order—determining your stability, in other words. If you’re a stable person, your finances should be stable too. For many people, this is an oversimplification; credit can be ruined by things beyond your control, and in some cases—it’s ruined by the credit bureaus themselves who can be foolish, and unscrupulous.
Think of your credit score like a diagnosis; just because the doctor tells you that something is currently wrong with your body, doesn’t mean your body will remain unhealthy, or at risk for certain diseases or conditions. Learn to budget, slay those money vampires, and as your credit increases, so will the love (in the form of options) shown to you by lenders. If a stiff suit can trust you, maybe that special someone will too.
For a FREE credit evaluation that gives you good (or at least better than previously thought miraculously possible) odds to sit opposite Meg Ryan, contact us by visiting us at our committed offices at 6989 Alamo Downs Pkwy, San Antonio, TX 78238, or call us at 210-520-0444.